If you and your former spouse are facing financial difficulties, you may want to consider filing for bankruptcy, even if you are in the middle of your divorce. Read on and give our firm a call today to learn more about how our skilled Newburgh bankruptcy lawyer can help you.
Do both divorcing parties have to split debt?
If you are uncertain about how debt should be separated when going through a divorce, it is important to understand that it will go through the same process as dividing assets. When it comes to dividing a divorcing couple’s assets, the method of equitable distribution is operated by New York courts. Keep in mind that equitable distribution does not suggest that the debt will be divided equally, as it instead will be divided equitably. In the event that you are going through a divorce with debt, you should not expect an even split. The court will take the below factors into consideration when deciding the equitable distribution of a couple’s debt:
- The income of each party
- The health of each spouse
- The age of each spouse
- The length of the marriage
- The value of your marital assets
- The amount of debt the couple has
- The earning capacity of the couple
- The standard of living that the couple is accustomed to
- The monetary and non-monetary contribution each party has made to the marriage
Do not wait to reach out to our skilled New York bankruptcy firm today if you have questions concerning how a court might separate you and your partner’s debt. With the help of our skilled legal team, you will be able to understand your options and choose the best choice for you. Reach out to us today to examine the specifics of your case today.
Do I have to file for bankruptcy with my partner during our divorce?
If you and your spouse are on good terms, you may want to consider your options for filing for bankruptcy together. If you choose to take this path, you may lower the risk of competition in a divorce. For example, rather than having a fight over who will pay off the credit cards, a chapter 7 discharge can make issues that are irrelevant. Some of the other benefits of filing jointly can involve lowered case costs because you will have one instead of two shared costs since each party will be contributing to the attorney’s fees and court filing fees, lowering some possible conflict, and speeding up both parties’ financial new beginnings.
Give our firm a call today to discuss your options with a skilled attorney if you are going through a divorce with debt and would like to learn more about filing for bankruptcy. With the assistance of our dedicated legal team, you can feel more comfortable knowing that your case is under the best care.
CONTACT A BANKRUPTCY LAWYER TO DISCUSS YOUR DEBT OR COLLECTION ISSUE
Michael D. Pinsky, P.C. represents clients in bankruptcy actions and related matters. Please call 845-394-2616 or contact the firm online to schedule a consultation.